Standard Motor Products, Inc. (SMP) Soars to 52-Week High, Time to Cash Out?

Shares of Standard Motor Products (SMP) have been strong performers lately, with the stock up 3.3% over the past month. The stock hit a new 52-week high of $41.75 in the previous session. Standard Motor Products has gained 33.4% since the start of the year compared to the 7.2% move for the Zacks Auto-Tires-Trucks sector and the -5.8% return for the Zacks Automotive - Replacement Parts industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 5, 2025, Standard Motor Products reported EPS of $1.29 versus consensus estimate of $0.97 while it beat the consensus revenue estimate by 9.75%.For the current fiscal year, Standard Motor Products is expected to post earnings of $3.7 per share on $1.75 in revenues. This represents a 16.72% change in EPS on a 19.75% change in revenues. For the next fiscal year, the company is expected to earn $4.26 per share on $1.8 in revenues. This represents a year-over-year change of 15.05% and 2.54%, respectively.Valuation MetricsStandard Motor Products may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Standard Motor Products has a Value Score of A. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 11.2X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.5X. On a trailing cash flow basis, the stock currently trades at 8.6X versus its peer group's average of 9.5X. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Standard Motor Products an interesting choice for value investors.Zacks RankWe also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Standard Motor Products currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Standard Motor Products passes the test. Thus, it seems as though Standard Motor Products shares could have potential in the weeks and months to come.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Standard Motor Products, Inc. (SMP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks